Monte B Cowboy
May 21, 2013 7:53am
Re: Google vs Apple -- American Workers are Occupied
-- May 21, 2013
Apple Corporation is 'among largest tax avoiders in USA'
according to a US Senate committee. The Senate committee said Apple had used "a complex web of offshore entities" to avoid paying billions of dollars in US income taxes.http://www.bbc.co.uk/news/business-22607349
-- May 21, 2013
"Apple Inc established an offshore subsidiary, Apple Operations International, which from 2009 to 2012 reported net income of $30bn, but declined to declare any tax residence, filed no corporate income tax return and paid no corporate income taxes to any national government for five years."
Irish-based Apples Sales International generated around $74bn (£48.5bn) in profits but "may have paid little or no income taxes to any national government on the vast bulk of those funds".
According to the senators on the Permanent Subcommittee on Investigations, Apple transferred offshore into low-tax countries the economic rights to its intellectual property - its valuable and usually patentable knowhow - with the result that it avoided around $10bn (£6.5bn) of US tax every year (what the senators characterise as $44bn, or £29bn, of US tax avoidance over the past four years).
What is the point of all this? Well the senators point out that Apple has continued to accumulate vast amounts of cash in places other than the US, and those cash holdings now exceed an eye-popping $102bn (£67bn).
Why does any of this matter?
Well it is part of a broad trend of multinationals paying a much smaller proportion of public sector costs in all the world's developed economies.
In the US, for example, corporate tax generated 32.1% of all federal taxes in 1952. Today that proportion has fallen to a puny 8.9%.